Deal Call: Two Stock Selections By Sumeet Bagadia on March 4th, Monday

During the two-hour session on Saturday, March 2, during the NSE and BSE’s special live trading session, both Sensex and Nifty hit all-time highs. The NSE Nifty ended the day at 22,378 on Saturday, with a gain of 395.60 points, or 1.80%, while the BSE Sensex gained 1,305.85 points, or 1.80%, to end at 73,806 points. Among the Sensex businesses, Asian Paints, Wipro, Larsen & Toubro, Asian Steel, and ITC showed the most gains. Among the biggest declines were UltraTech Cement, NTPC, Kotak Mahindra Bank, and Mahindra & Mahindra.

Nifty Futures Bulls Are Comforted by a Falling VIX as It Eyes 22.5K
Ashwin Ramani, a derivatives and technical analyst at SAMCO Securities, reports that during the special trading session held by the Stock Exchanges on March 2, the Nifty began with a gap up and moved sideways until finishing 40 points higher at 22,378. Bulls were reassured when the fear gauge, the India VIX, finished at 14.99, having dropped 1.59% intraday. In Nifty, there was a lot of writing at the 22,000, 22,100, and 22,200 strikes. Since February 21, 2024, Nifty has encountered significant resistance at the 22,250 level. The 22,200 Strike saw a strong surge upward as the put writers, or Bulls, ultimately overthrew the call writers, or Bears. There was also substantial put writing for the 22,300 Strike. Since the call writers hold sizable positions at the 22,400 strike, information regarding the future direction of the Nifty will be revealed by the options activity at this strike.

At 47,287, Bank Nifty finished unchanged. There was a lot of writing at the 46,500 and 47,000 Bank Nifty strikes. From the maximum call open interest strike of 47,000 on the Index, the bulls overthrew the bears. A new leg of the Bank Nifty rise may be sparked by option activity above the 47,400 Strike and an intraday breakthrough above this level, according to Ashwin Ramani.

Market Prognosis
“Nifty continued its upward trend, rising 0.75% in the previous week and reaching a new high of 22,419.55,” said Om Mehra, Technical Analyst, SAMCO Securities. In February, the Nifty increased by 1.13% on a monthly basis. India’s 8.4% Q3 GDP growth propelled the Index’s recent Friday rise, which resulted in a sideways market and a special trading session on Saturday. With a third straight weekly rise, the Nifty’s primary trend is still favorable from a technical standpoint. Although Nifty IT has underperformed, rotating involvement has been shown by all sectors together. But the modest performance of mid-and small-cap companies calls for caution about overexposure to them.”

“A balanced market is indicated by the RSI, which is solidly at 61. Resistance is positioned at 22,550 and 22,700 levels, while support is located at 22,100 levels. Last week, the Bank Nifty ended at 47,286.90, up 1.04%. The MACD indications stayed between neutral and positive. The 20-day SMA is not being traded by the Index. If breached, a crucial resistance level at 47,800 for the next week may trigger the next upward rise. 46,200 was shown to be a solid support level for the next trading sessions by the volume profile analysis,” Om Mehra said.

Stocks to Purchase Right Now
Choice Broking’s Executive Director Sumeet Bagadia made a recommendation on Monday, March 4th, regarding the purchase or sale of two stocks. The whole technical analysis of Great Eastern Shipping Company and Epigral may be found here.

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Cash purchase of EPIGRAL at Rs. 1206.45; stop-loss at Rs. 1170; goal at Rs. 1286

After a period of sideways movement, EPIGRAL finally broke over the prior barrier of Rs 1170 and is presently trading at Rs 1206.45. With its higher highs and higher lows, this breakout has created a pattern that suggests a change to a bullish trend.

Furthermore, the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) are the major EMAs that EPIGRAL is trading above. There is a significant bullish momentum here, which suggests that there may be further price appreciation ahead. With the Relative Strength Index (RSI) reaching 64, there is further buying pressure and support for the uptrend.
It is a feasible alternative for investors wishing to join the market to purchase EPIGRAL at Rs 1206.45. A stop-loss (SL) of Rs 1170 could be used if you want to successfully control risk. As a safeguard, this stop loss level reduces possible losses in the event of a market reversal.

In conclusion, with a target price of Rs 1286, EPIGRAL offers a compelling purchasing opportunity. To protect their assets, investors should, nonetheless, proceed cautiously and use risk management techniques, such as stop-loss orders.

Great Eastern Shipping Company purchased GESHIP with cash for Rs 1004.55, set a stop-loss at 975, and set a goal of 1060.

At now, GESHIP is selling at Rs 1004.55. On the daily chart, it has lately established a bullish pattern called a double bottom, which has led to a rise in price. In addition, the present candlestick pattern—a dragonfly doji—is a positive indication that the upward trend may continue.

Furthermore, the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) are among the important EMAs that GESHIP is trading above. This suggests that the stock is moving in a very good direction and raises the prospect of further price growth. With the Relative Strength Index (RSI) at 61, buying pressure is increasing and the trend is being supported.

GESHIP at Rs 1004.55 could be a great choice for those wishing to join the market. To properly limit risk, a stop-loss (SL) should be established at Rs 975. This stop-loss level protects against possible losses in the event that the market reverts to its previous trend.

In conclusion, at a target price of Rs 1060, GESHIP offers a compelling purchasing opportunity. To protect their assets, investors should exercise prudence and use risk management techniques like stop-loss setting.